Monday 30 August 2010

Supply concerns have seen the US imported manufacturing beef market increase further this week with prices improving by another 1-2c/lb.  The USA domestic 90cl Cow price also improved by 2c/lb and there seems to be no downside in sight for the near future at least.

 

In Asia there has been significant growth into South Eastern markets over the past 12 months as booming population and strong economic growth has boosted demand for red meat.  Figures for the past 12 months show NZ beef exports to the region up by 21%, Australia up by 20%, USA up by 33% and Brazil by 12%.

 

In contrast despite an increase in overall beef imports by Korea, NZ is losing market share.  For the year to date Australian beef exports to Korea are up by 9%, USA by a huge 56%, while NZ exports to Korea are down by 4%.  Strong promotional activity by Australia plus some significant discounting of USA beef have been the major factors in creating this trend.  

   

The NZ domestic market is very short of product.  Demand is getting desperate and prices are improving steadily.